According to preliminary data, US GDP growth slowed down in the II quarter to 2.1% in annual terms from 3.1% in the I quarter, according to the US Department of Commerce.
Meanwhile, the volume of private investments decreased by 5.5% last quarter. In particular, investments in the construction of non-residential buildings and structures have declined for the first time since 2015 – by 0.6%, investments in residential real estate – by 1.5%.
The growth of the PCE Core Index (Personal Consumption Expenditures, Excluding Food & Energy), which the US Federal Reserve System (FRS) closely monitors when assessing inflation risks, accelerated in the II quarter to 1.8% from 1.1% in the I quarter. The Fed considers it necessary to keep this figure within 2%.
The US Department of Commerce also presented a revised estimate of GDP growth for the IV quarter of 2018. The country's GDP grew in the IV quarter by 2.5% in annual terms, and not by 3%, as previously reported.
US GDP increased by 2.9% in 2018, the highest figure since 2015.